Working Capital and Term Loans

Working Capital Lines

These lines have many uses. Many business owners use lines of credit to increase inventory, payroll, etc. Business lines of credit work like credit cards. As you pay down the balance, funds become available for further use. Payments on lines of credit are calculated based on the balance on the line.

Business Term Loans

Usually used for specific capital expenditures. With term loans, all funds are dispersed to you at closing. Repayment is calculated based on the rates and term of the loan. The payments are principle and interest.